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Job Support Scheme Announcement

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24th September, 2020

Rishi Sunak has just announced a package of measures relating to how the government is going to manage the future of the UK jobs market throughout the next 6 months after the current Job Retention Scheme ends.

This being off the back of the Prime Ministers statement on 22 September concerning the increase in cases and the longevity of the crisis currently faced.

Jobs Support Scheme

The furlough scheme is ending on 31 October  as planned and in its place will be the new Jobs Support Scheme to commence on 1 November for 6 months.  Whilst we are waiting for further clarification and specific details to be released, it appears that the employee will need to work at least one third (33%) of their normal working hours which will be paid by the employer at 100%.  The remaining two-thirds requires some clarification with the chancellor stating that the government  and the employer will then increase those wages to cover up to two-thirds of the ‘lost’ wages for the employee up to a value of 77%.

It’s important to note there will be a cap of £697.92 on the employees usual salary for the two-thirds that will covered.

Open to SME’s

Companies will be able to rely on this without having to have furloughed staff previously.

Small and Medium companies can apply for this however large employers will need to show that their income has dropped significantly.

Self Employed

The current grant scheme for the self-employed has been extended by 6 months also meaning self-employed individuals can receive a government grant for lost earnings based on their pre-covid-19 income.

Job retention bonus

The job retention bonus will still remain with £1000 being supplied to each employer who keeps an employee who was furloughed up to January 31st.

Helen Watson


Head of Team and Partner
Email: [email protected]
Tel: 01244 405 565

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